Sorry for the confusion in my previous post.
First, the LightHouse Station(s) will begin operation, broadcasting ABC, NBC, CBS, Fox and PBS channels in ATSC 3.0.Let's say channel 34 is the new home of WNYO and is elected the LightHouse station. It would broadcast WNYO, WKBW, WGRZ, WIVB and WNED programming and it will display their virtual channel number: 49-1 ,7-1 ,2-1 ,4-1 , 29-1, 17-2.
Second, Nite Lite Station(s) will broadcast in the current ATSC 1.0 high definition, whether it is 1080 or 720. Participants might be restricted to ABC, NBC, CBS, Fox and PBS broadcasts only.Channel 49 is a good candidate for this as it broadcasts in the soon to be phase-out spectrum (RF 49) and it is owned by Sinclair which is involved in the ATSC 3.0 technology.Third, as each station begins to broadcast ATSC 3.0 on their own new transmitter, their signal from the LightHouse will be eliminated immediately, but their ATSC 1.0 signal will remain on the Nite Lite Station until the station (and FCC) believes enough time has elapsed for consumers to convert to ATSC 3.0 reception; for a maximum of 39 months from the end of the auction. I'm speculating that WNED (like many PBS stations) will move to the VHF band which will entitle them to a cash payment from the government. Let's say WNED begins operation on RF channel 4 January 2, 2019 sometime overnight; at that moment the RF 49 LighthHouse signal will remove the WNED signal.
If I've confused you anymore, please let me know.